1) As the relative expected return on dollar assets increases, foreigners will want to hold more ________ assets and less ________ assets, everything else held constant.

A) foreign; foreign

B) foreign; dollar

C) dollar; foreign

D) dollar; dollar

2) When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets, there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets.

A) dollar; dollar

B) dollar; foreign

C) foreign; dollar

D) foreign; foreign

3) When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets, there is a ________ demand for dollar assets, everything else held constant.

A) dollar; foreign; constant

B) dollar; foreign; higher

C) foreign; dollar; higher

D) foreign; dollar; constant